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About Efficiency Rating Procedures
This topic can be explained as a procedure with is related to performance. The computing of this is done by comparison of the time taken actually to complete a job or work with the time allotted (standard) to perform this given work or job in question. A worker will only be considered as efficient only if the time which he or she took happens to be less or equal to the standard time allotted.
In order to figure out the efficiency in percentage, a student has to divide the amount of the standard time allotted by the actual time taken and then multiply with 100 to get the percentage. The need for efficiency rating procedures is as follows:
- Calculation of wages
- Preparation of labour budget requirements or manpower requirements
- Determination of productivity with the use of the input-output ratio
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